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These Are the 20 Most Underpriced Housing Markets in the U.S.

Prostock-Studio / iStock.com
Prostock-Studio / iStock.com

Since investing in real estate is considered a path to wealth, one of the things prospective homebuyers look for when shopping for properties is a community where homes will appreciate in value. Before choosing a place to live, homebuyers often will work with their real estate agent to find out the average home value in the area or do their own internet sleuthing.

After all, new homeowners want to move in knowing that equity is growing and confident they've made an incredible purchase.

Housing Market 2023: These 15 Cities Are Poised for the Most Stable Growth and Are Likely To Keep Their Value
Learn: 3 Things You Must Do When Your Savings Reach $50,000

But what are the best cities to buy a home to achieve financial growth in the investment? GOBankingRates did the research for you, analyzing data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. The 2023 average home value was subtracted from each city's median list price. GOBankingRates then ranked the top 20 cities in terms of the largest difference between the value and list price. Those looking to find a new home might want to look in one of these 20 cities for a potential great investment.

Murmakova / Getty Images/iStockphoto
Murmakova / Getty Images/iStockphoto

Cape Coral, Florida

  • 2023 median list price: $169,989

  • 2023 average home value: $419,840

  • Difference between list price and home value: $249,851

I'm a Real Estate Agent: Don't Buy Real Estate in These 5 States If You Want To Be Rich in 10 Years
Discover: 15 Cheapest, Safest Places To Live in the US

Eau Claire, Wisconsin

  • 2023 median list price: $178,089

  • 2023 average home value: $288,964

  • Difference between list price and home value: $110,875

Find Out: 5 Reasons the Housing Market is Reversing

anouchka / Getty Images
anouchka / Getty Images

Urban Honolulu, Hawaii

  • 2023 median list price: $984,436

  • 2023 average home value: $1,057,256

  • Difference between list price and home value: $72,819

Vito Palmisano / Getty Images/iStockphoto
Vito Palmisano / Getty Images/iStockphoto

Punta Gorda, Florida

  • 2023 median list price: $318,481

  • 2023 average home value: $378,501

  • Difference between list price and home value: $60,020

Eloi_Omella / Getty Images
Eloi_Omella / Getty Images

San Francisco, California

  • 2023 median list price: $1,136,056

  • 2023 average home value: $1,189,841

  • Difference between list price and home value: $53,785

Read More: Could You Afford a Vacation Home in Europe? Check Out the Prices in These 8 Cities

Sean Pavone / Getty Images/iStockphoto
Sean Pavone / Getty Images/iStockphoto

Milwaukee, Wisconsin

  • 2023 median list price: $286,044

  • 2023 average home value: $334,836

  • Difference between list price and home value: $48,791

RobHainer / Getty Images/iStockphoto
RobHainer / Getty Images/iStockphoto

Macon, Georgia

  • 2023 median list price: $123,167

  • 2023 average home value: $171,606

  • Difference between list price and home value: $48,439

Aaron Yoder / Getty Images/iStockphoto
Aaron Yoder / Getty Images/iStockphoto

Cedar Rapids, Iowa

  • 2023 median list price: $177,746

  • 2023 average home value: $225,839

  • Difference between list price and home value: $48,093

See: 10 Affordable U.S. Small Towns With a Great Quality of Life

Alexphotographic / Getty Images/iStockphoto
Alexphotographic / Getty Images/iStockphoto

Baltimore, Maryland

  • 2023 median list price: $328,544

  • 2023 average home value: $374,024

  • Difference between list price and home value: $45,480

emiliomarin66 / Getty Images/iStockphoto
emiliomarin66 / Getty Images/iStockphoto

Philadelphia, Pennsylvania

  • 2023 median list price: $302,803

  • 2023 average home value: $344,873

  • Difference between list price and home value: $42,071

DenisTangneyJr / Getty Images/iStockphoto
DenisTangneyJr / Getty Images/iStockphoto

Lake Havasu City, Arizona

  • 2023 median list price: $320,231

  • 2023 average home value: $361,620

  • Difference between list price and home value: $41,389

Learn: How To Avoid Paying Taxes When You Sell Your House

DenisTangneyJr / iStock.com
DenisTangneyJr / iStock.com

Rochester, New York

  • 2023 median list price: $191,600

  • 2023 average home value: $230,830

  • Difference between list price and home value: $39,230

J. Michael Jones / Getty Images
J. Michael Jones / Getty Images

Asheville, North Carolina

  • 2023 median list price: $380,239

  • 2023 average home value: $415,625

  • Difference between list price and home value: $35,386

benedek / Getty Images
benedek / Getty Images

Buffalo, New York

  • 2023 median list price: $213,783

  • 2023 average home value: $247,822

  • Difference between list price and home value: $34,039

Real Estate Transfer: Baby Boomers Secure Generational Wealth by Transferring Property to Children

DenisTangneyJr / iStock.com
DenisTangneyJr / iStock.com

Racine, Wisconsin

  • 2023 median list price: $228,853

  • 2023 average home value: $262,844

  • Difference between list price and home value: $33,991

amolson7 / Getty Images/iStockphoto
amolson7 / Getty Images/iStockphoto

St. Louis, Missouri

  • 2023 median list price: $210,528

  • 2023 average home value: $243,391

  • Difference between list price and home value: $32,864

Steven D Reynolds / Getty Images/iStockphoto
Steven D Reynolds / Getty Images/iStockphoto

Muskegon, Michigan

  • 2023 median list price: $180,644

  • 2023 average home value: $211,526

  • Difference between list price and home value: $30,882

Find Out: Why Retirees Are Expected To Sell Their Homes in These 10 Cities

DenisTangneyJr / Getty Images
DenisTangneyJr / Getty Images

Detroit, Michigan

  • 2023 median list price: $211,200

  • 2023 average home value: $241,852

  • Difference between list price and home value: $30,652

traveler1116 / Getty Images/iStockphoto
traveler1116 / Getty Images/iStockphoto

Harrisburg, Pennsylvania

  • 2023 median list price: $236,172

  • 2023 average home value: $266,254

  • Difference between list price and home value: $30,082

Sean Pavone / Getty Images/iStockphoto
Sean Pavone / Getty Images/iStockphoto

Akron, Ohio

  • 2023 median list price: $177,300

  • 2023 average home value: $205,482

  • Difference between list price and home value: $28,182

5 Cities Becoming Popular With Baby Boomers: Are They Right for Your Retirement Years?
Read More: 5 Expensive Renovations Homeowners Always Regret

Whether you're looking for a new home to live in for the next several years or an investment property to bring in some extra income, these cities are a great place to start.

To find the Metro areas with the most underpriced homes, GOBankingRates analyzed data from Zillow using the Zillow Median List Prices and the Zillow Home Value Index for Single Family Homes. GOBankingRates found (1) the 2023 average median listing price and (2) the 2023 average home values. Then, GOBankingRates calculated the difference, sorted by the largest differences, and kept the top results. All data is up-to-date as of August 8, 2023.

Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: These Are the 20 Most Underpriced Housing Markets in the U.S.